Reconstitution Central Your Guide to Russell's Annual Index Reconstitution JUMP AHEAD TO Featured Articles In order to maintain true representation of global equity markets and avoid capitalization and style slippage, Russell annually rebalances the entire Russell family of indexes. Annual reconstitution ensures that the indexes reflect the changes in the market over time and accurately represent the true opportunity set of institutional managers. Russell's U.S. and Global index families reconstitute simultaneously. 2008 Reconstitution The 2008 reconstitution of the Russell Indexes will take place after the market close on June 27, 2008. Key Dates to Note June 13   Preliminary additions and deletions to the Russell Global Index and the Russell 3000® published June 20 and 27   Updates to the list of additions and deletions June 27   Reconstitution final after the close of the U.S. markets June 30   Final membership lists posted for the Russell Global Index, Russell 3000®, Russell 1000®, Russell 2000®, Russell Midcap® and the Russell Microcap® indexes New for 2008   In the calculation of styles in 2008, Russell will not adjust for the impact of Financial Accounting Standards Board (FASB) 158 for U.S. companies as in 2007. Government holders have been divided into three categories; Direct Government Holders, Indirect Government Holders, Government Pensions. Each category is defined differently in terms of determining available shares/float. Anguilla, Antigua and Barbuda, Barbados, the Faroe Islands and the Turks and Caicos Islands have been added to the BDI list of countries. For further details and a complete list of all changes for 2008 please see the Russell U.S. Index Construction and Methodology Document (PDF) and the Russell Global Index Construction and Methodology Document (PDF) or contact your client service associate at index@russell.com. Reconstitution Frequently Asked Questions Featured Articles Capitalization Banding: Russell Index Reconstitution 2007 Market Index Change: Why It Creates Better Measures Russell Research: Price Pressure at Russell Index Reconstitution (PDF) The Importance of Reconstitution Complete reconstitution is important for an index designed to represent market segments because market characteristics change over time. For example, a small-cap security can grow into the mid-cap range over time. Lack of complete reconstitution results in sector, capitalization, and style biases, all of which challenge the ability of an index to represent the market. Russell research has shown that increasing the frequency of Russell index reconstitution involves substantial increases in turnover costs to investors without offsetting benefits. Research concludes that the combination of annual reconstitution and the quarterly addition of eligible initial public offerings (IPOs) results in the most effective balance between index turnover and market representation. RC4634			Index Membership See our 2007 Index Membership Lists   Also Available... Subscribe to our Reconstitution Central RSS Learn more about RSS Printer friendly version of this page

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